Stocks rebound, dollar climbs to one-year high

Global stocks rebounded on Wednesday, recovering from a rout in technology shares, while the dollar climbed to a one-year high, driven by expectations of at least one Federal Reserve rate hike this year.

Technology stocks edged higher ahead of earnings from chipmaker Micron, whose products are central to the AI boom. However, sentiment remained fragile as stretched valuations and rate hike fears weighed on the sector. On Wall Street, all three major indexes rose, led by consumer discretionary, industrials, and materials stocks. Energy stocks were the biggest losers as crude oil prices eased on continued flows through the Strait of Hormuz.

The dollar's rise to a one-year peak reflects growing expectations of Fed tightening, which widens the interest rate differential between the US and other major economies. This divergence supports the dollar against currencies like the euro and yen, making dollar-denominated assets more attractive. For forex traders, this trend can be monitored on NowPrice's live dashboard, which tracks real-time currency pairs and cross-rates.

Looking ahead, markets will focus on upcoming US economic data, including durable goods orders and personal consumption expenditures (PCE) inflation, which could reinforce or temper rate hike expectations. Additionally, any shifts in risk sentiment from tech earnings or geopolitical developments in the Middle East may influence currency flows. Traders should watch for further dollar strength if data continues to support a hawkish Fed stance.